Mortgage Payoff Accelerator

This program is a cashflow-based strategy that uses a Line of Credit (LOC) (often a HELOC) to help you pay down your mortgage principal faster than making standard monthly payments alone. It works by temporarily moving some mortgage principal onto the LOC, then using your normal income and monthly surplus to pay the LOC down aggressively, repeating the process over time.

Learn how to payoff you mortgage in 6-8 years.

Mortgage acceleration strategy:

Most mortgages are amortized so you pay more interest early and less principal. The accelerator approach aims to reduce your mortgage balance sooner, so less interest accrues over the life of the loan.

There are two common methods:

Chunk Paydown Method
- You draw from the LOC and make a one-time principal payment to reduce the mortgage balance.
- You then focus your extra cashflow on paying the LOC down as quickly as possible.
- Once the LOC is paid down to a comfortable level, you may repeat with another chunk payment.
Cashflow “Sweep” Method
- Your income is deposited into the LOC and normal expenses are paid from it.
- This can lower the LOC balance on average (LOC interest is often calculated daily).
- Any monthly surplus may be applied as additional mortgage principal payments.

Why some people use it

To accelerate principal reduction on the mortgage
To potentially reduce total interest paid over the life of the loan
To create a more structured plan around budgeting and debt payoff

What determines how fast it works

Results are driven mainly by:

Your monthly surplus cashflow (income minus all expenses)
The interest rate and terms on the LOC
The interest rate and terms on your mortgage
Fees, rate changes (many LOCs are variable), and how consistently you follow the plan

What you should expect

This is not a refinance and does not change your mortgage contract unless you choose to refinance separately.
You will still make your required mortgage payment unless your lender or loan type works differently.
The LOC balance may rise and fall as you use it for chunk paydowns and then repay it.

Key considerations and risks

LOC rates are often variable and may increase over time, reducing or eliminating potential savings.
Using an LOC adds revolving debt and requires strong discipline to avoid carrying a long-term balance.
There may be fees (closing costs, annual fees, early termination fees, etc.) that impact results.
This approach is not a fit for everyone—especially households without consistent surplus cashflow or those who prefer fixed, predictable debt structures.

Disclaimers (Important)

Educational purpose only: This information is provided for general education and planning discussion. It is not financial, legal, tax, or investment advice.
No guaranteed payoff timeframe or savings: Any payoff timelines (such as “6–8 years”) are examples only and depend on your individual cashflow, interest rates, fees, and consistent execution.
Lender terms matter: Mortgage and LOC rules vary by lender and jurisdiction. You should confirm how extra principal payments are applied and how LOC interest is calculated.
Consult professionals: For advice specific to your situation, consider speaking with a licensed financial professional, tax advisor, and/or your mortgage/LOC provider.